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Pakistan PM says not afraid of sanctions ISLAMABAD, May 19 (Reuters) - Prime Minister Nawaz Sharif said on Tuesday Pakistan was not afraid of world economic sanctions which a Pakistani nuclear test would trigger. "As far as sanctions are concerned, we are already used to them. We are not going to be afraid of them," he said at a function to celebrate 50 years of state-run Radio Pakistan. "In this connection, all the justice-seeking nations should be with us. Our friends are already with us and the entire nation is strongly united," he said in a speech which was broadcast live. His speech gave no clue as to whether Pakistan would go ahead with a test to demonstrate its nuclear capability against what it sees as a threat from its arch-foe, India. The United States, Britain and Japan have all urged Pakistan not to conduct a nuclear test in response to India's five. Both Washington and Japan have said they will punish Pakistan with sanctions if it defies calls for restraint. Islamabad has voiced "deep disappointment" at what is sees as lukewarm sanctions on New Delhi by Washington and Tokyo and a mere words of condemnation from major industrial powers and a weekend Group of Eight (G8) Industrialised states. Sharif said Pakistan has taken serious notice of the Indian interior minister's warning to Islamabad over Kashmir, a major flashpoint in Indo-Pakistan relations. India and Pakistan have fought two of their three wars over the disputed Himalayan region, two thirds of which is controlled by New Dehli and the rest by Islamabad. "You must have heard today that they are discussing their aggressive designs towards Kashmir. By grace of God we are prepared for any trial and the whole world knows that Pakistan has the ability to defend itself," Sharif said. Indian Home Minister Lal Krishna Advani told reporters on Monday that India's nuclear tests showed New Dehli would take a tough stance over Kashmir insurgency. India accuses Pakistan of aiding Kashmiri militants but Islamabad denies the charges and says it only provides diplomatic and moral support to "freedom fighters" there. Sharif said it should become clear to the world that India's nuclear programme was hegemonist and aggressive. "Now the whole world believes that the fanatic fundamentalist rulers in India would not hesitate to cross the last threshold of aggression," he said. N-tests only 'matter of time' says Pakistan TOKYO, May 19 (Reuters) - Pakistani Foreign Minister Gohar Ayub Khan said it would only be "a matter of time" before the country carried out nuclear tests in retaliation for India's blasts, a Japanese newspaper reported on Tuesday. In a phone interview with the Mainichi Shimbun, Khan said that Monday comments by a Japanese envoy suggesting that Pakistan had not yet made up its mind about whether to carry out such tests were "incorrect". "It is just a matter of time," he was quoted by the Mainichi as saying. The interview was conducted late Monday in Islamabad, the newspaper said. Khan added that a decision had already been reached about conducting a test, but declined to elaborate further, the Mainichi said. Seiichiro Noboru, an envoy dispatched by Prime Minister Ryutaro Hashimoto, said on Monday after meeting with Khan that his impression was that the government had yet to make up its mind about tests. "My understanding is that the Pakistani government is reviewing the situation very cautiously, very carefully," he added. India calls China envoy home for consultation NEW DELHI, May 19 (Reuters) - India has called its ambassador to China back to New Delhi for consultations over the strain in relations between the two countries following India's nuclear tests, the foreign ministry said on Tuesday. "The Indian ambassador is coming back for consultation. He has not been recalled," the ministry of external affairs' spokesman told reporters. Stressing that the move was in now way a diplomatic gesture, he said: "He has been called for routine consultation in the context of the developments. You can see it as a routine consultation". He said Ambassador Vijay Kunhianandan Nambiar was expected to arrive in the Indian capital on Tuesday evening. China's official media stepped up its rhetoric this week over India's nuclear tests. India, which is suspicious of the close military relations that nuclear-armed China and arch-enemy Pakistan have enjoyed for decades, tied its controversial decision to resume nuclear testing after a 24-year break Jaffna Mayor Sarojini Yogeswaran’s
cremation today in Colombo The remains of Jaffna Mayor, Mrs. Sarojini Yogeswaran was flown down to Colombo yesterday afternoon for cremation in Colombo today at Hindu section of General Cemetery, Kanatte. The body was flown down to Colombo at the request of the late Mrs. Yogeswaran’s brother Dr. Ramanathan and sister who have arrived from London and another sister who is living in Colombo. The body was brought to Colombo by TULF Vice President Ananda Sangari who flew to Jaffna on Monday to co-ordinate arrangements in connection with her funeral in the absence of TULF President Murugesu Sivasithamparam who is away in Madras. Hundreds of shocked and grieved Jaffna residents got a final opportunity of paying their last respects to the slain Mayor who was elected about four months ago in January 1998 after a lapse of almost 15 years. Her body was placed at the Jaffna Municipal Council yesterday afternoon. The body of Mrs. Yogeswaran was taken from Ratmalana airbase to the TULF headquarters at Havelock Road where it will lay for a few hours before being taken to A. F. Raymond’s funeral parlour in the evening. It will remain there till 4 p.m. today and taken for cremation at Hindu section of Borealla Kanatte. Last Sunday morning two trousered youths had called out ‘Amma’ to Mrs. Yogeswaran and asked her to come out from main hall in her residence at Navalar Road, Nallur. They shot her at point blank range when she came out on to the verandah. She had attempted to stand up but had collapsed near the front door due to severe gun shot injuries said Miss Jeyaratnam Pathmajothy who lived in the house of late Mayor at the Magisterial inquiry on Monday morning. The Magisterial inquiry into the shooting of Mrs. Yogeswaran was held before Additional Magistrate, Jaffna K. Kesavan at Jaffna District Magistrate’s Court on Monday morning. In her evidence Miss Pathmajothy said my mother, two sisters and brother started living at Mrs. Yogeswaran’s house in Jaffna since December 12 last year. Mrs. Yogeswaran who was elected Mayor of Jaffna came into occupation on Thai Pongal day (January 12, 1998). "On the day in question we were loading our household goods onto a land master tractor trailer when two youths clad in black trousers and blue long sleeve shirts came to her house. The youths inquired from us as to whether ‘Amma’ (Mrs. Yogeswaran) was at home. At that time she was in conversation with Municipal Councillor Paramasivam in the main hall. When we told the youths that ‘Amma’ was inside and continued with our task of loading goods we heard a series of gunshots at very close range and we saw one of the two youths brandishing a gun and firing in the direction of ‘Amma’. Mrs. Yogeswaran who was hit by gunfire attempted to the get up from the chair but fell holding on to the frame of main door. Councillor Paramasivam was also hit by gunfire and fell crying. "I did not notice how or where the two assassins ran and as I ran in the direction of ‘Amma’ she lay in a pool of blood and was in a kneeling position. "I called out to ‘Amma’s domestic aide Kulam Kamalam (22) and requested her to run for help to the adjoining army camp and obtain assistance to transport the injured to hospital. "Meanwhile I cradled the hand of ‘Amma’ on my lap and all other inmates of house came running up on hearing gun shots. "I was shocked and grieved after almost a lapse of ten minutes army and police personnel arrived in a jeep. "We helped Mrs. Yogeswaran and injured councillor Paramasivam into the jeep and despatched them to Jaffna Teaching Hospital. "I subsequently came to know that ‘Amma’ had succumbed to her injuries on her way to hospital. I am not in a position to identify her assassins," she said. Earlier the post mortem autopsy was held by JMO Dr. Ram Manohar who certified the cause of death had been due to haemorrhage caused by shooting and excessive bleeding. This was held at Jaffna Teaching Hospital. Mrs. Yogeswaran’s domestic aide Kulam Kamalam (22) and adviser and Secretary K. Poopalaratnam also gave evidence and further inquiry was fixed for May 25, 1998. Cooray challenges findings of SPC Former UNP Minister Sirisena Cooray in a writ application filed in the Court of Appeal yesterday challenged the findings against him by the Special Presidential Commission which probed the killing of Mr. Lalith Athulathmudali. Mr. Cooray has requested court to issue a writ of certiorari quashing the findings of the SPC which said that Mr. Cooray was a member of the conspiracy which plotted to murder Mr. Athulathmudali. K. N. Choksy PC, will support the application on May 25. Kamal granted Rs. 100,000 bail The Court of Appeal yesterday granted bail to movie star Kamal Addaraarachchi. He was ordered to pay Rs. 100,000 as the bail quantum, with two sureties, acceptable to the court. The Court of Appeal in granting bail, set aside the order of the Colombo High Court dated 5.3.98, where bail was refused to Kamal. Subsequently an appeal was filed in the Court of Appeal seeking for bail. Mr. Tilak Marapana, President's Counsel, who supported the appeal for bail, told the Court of Appeal that the High Court, on 23.12.97 had convicted his client, (Kamal Addara-arachchi) of abduction and rape of a girl, and consequently a sentence of ten years rigorous imprisonment, and a fine of rupees ten lakhs had been imposed. Counsel said that even if Kamal had to pay the fine of rupees one million, Kamal still had to serve a jail term of ten years rigorous imprisonment. Nine lakhs out of the ten has been ordered to be paid to the girl, the default of which will make Kamal liable to face another rigorous imprisonment term for two years. Mr. Marapana told Court that, it would be beneficial for both parties if Kamal was enlarged on bail and allowed to earn the money. Mr. Yasantha Kodagoda, State Counsel, who appeared for the Attorney General, said that, the appeal papers had reached the Court of Appeal only this Monday. The Court said that the Appeal filed by Addaraarachchi, against the conviction and sentence, imposed by the Colombo High Court, cannot be heard till the end of this year. In the interest of natural justice, the appellant should be enlarged on bail. The High Court order dated 5.3.98, refusing bail was set aside. Bail was granted by the Court of Appeal. Mr. Tilak Marapana, President's Counsel, with Mr. Nalin Laduwahetty, Mr. Jayantha Fernando, and Mr. Anuja Premaratne appeared for Addaraarachchi. State Counsel Yasantha Kodagoda appeared for the Attorney General. The Court of Appeal Bench comprised Justice Ismail and Justice Asoka de Silva. In
Parliament Opposition Leader Ranil Wickremesinghe said in parliament yesterday that the Air Lanka deal was the biggest betrayal after the Kandyan Convention. "We did not ask for this debate to overthrow the government. There had been no adequate discussion of this largest ever deal. I thank the minister for allowing a debate. The proper process has not been followed in transferring the 40 percent shares of Air Lanka. The manner in which the six Airbuses are to be procured and the manner in which selections were made are improper. Shares could have been sold through the Stock Market or the Public Enterprises Reform Commission. You have given the same concession which Bonderman was asking to Emirates. Bonderman and his companies are registered in United States where all companies are subject to corruption laws. When a company gives even a dollar as bribe they become subject to prosecution. There are no such laws in Emirates. The Airlanka operating manual lays down a procedure for procurement. But Airlanka did not follow this procedure. The Airbuses have been ordered in January 1998, when the Airlanka was still not privatised. How did this happen. This is a serious breach of the tender procedure. In my letter to James D. Wolfenson I have stated that a future UNP government would not honour any of the Terms of the Agreement with Emirates as it is full of corruption. The Airlanka deal is the biggest betrayal after the Kandyan Convention. We will exclude all exclusive rights given to parties and the national interest will be protected". Debate given for the whole
country to know the truth Minister Dharmasiri Senanayake winding up the debate said: "I agreed to give a full debate on this matter as the President said this debate should be held so that the whole country will know the truth. If you come to power will you abrogate this agreement. You should make a clear statement. This is important for investor confidence. Ranil Wickremasinghe: I will cancel all parts of the agreement that are tainted with corruption. Minister Senanayake: Most of the speakers of the UNP have made this an opportunity to sling mud at the government and the President. On April 8 I wrote a letter to the Chairman of COPE which handles matters regarding privatisations. If we have a decision regarding privatisation we have to submit documents. Where is Mr. Hameed? No front bencher of the opposition spoke. This has been reduced to a mud slinging debate. They say that Air Lanka has been sold. It was only partially privatised. The logo will never change. The peacock logo will be updated in a better way. The Air Lanka training will not be taken to Dubai. It will be improved. Casual employees will be made permanent. The Airbus was over-priced by rupees 4 million. The 1991 Air Bus deal was a fraudulent one. There was no technical committee report. Air Lanka was in need of refleeting. Four Tri Stars were bought in your time in 1994. Today Tri Stars are not produced. Even after buying we have to continue refleeting. We would continue with the Lockheeds. After I became minister not a cent was pumped into Air Lanka. During you time millions were pumped into Air Lanka. This is an agreement between two governments. If you had asked with more responsibility our image outside would have been protected, and prevented us from paying insurance. I would like to thank the members for participation in this discussion. UPTO to meet President The Union of Posts and Telecom Officers (UPTO) is expected to talk to President Chandrika Kumaratunga about unfulfilled promises and problems in the Postal Department when they meet her for discussions at 9.30 this morning. The UPTO, which was instrumental in organising a one-and-a-half month crippling overtime boycott at the Postal Department recently, will hold discussions with the President at Temple Trees. This is after repeated requests for a meeting. Ranil's letter to World Bank President Opposition Leader Ranil Wickremesinghe in a letter to World Bank President James D. Wolfensohn has said that a government formed by the UNP will not honour any commitments or agreements that are entered into as a part of the Air Lanka restructuring transaction with the Emirates airline. Following is the full text of the statement: "I am writing to you to bring to your urgent attention certain serious issues relating to transparency and corruption that have surfaced in connection with the recent re-structuring of the government controlled airline-Air Lanka. I am addressing this letter to you because of the World Bank's involvement in financing the technical advisory services relating to this transaction as well in providing general assistance to the Public Enterprises Reform Commission (PERC) on privatization. I also understand that this project is now awaiting approval for a Multilateral Investment Guarantee Agency (MIGA) guarantee. More importantly I have followed with great interest the concern you have expressed at an international level on matters pertaining to official corruption and transparency. There is no doubt that it is owing to the vision and responsibility displayed by persons such as yourself that the OECD's Convention on Combating Bribery of Foreign Public Officials will at last become a reality. Therefore, as a former Investment banker, I believe that you will share my outrage at the manner in which the Air Lanka transaction has taken place. Background On 5th April 1998 the Sri Lanka government announced that it had selected Emirates as the Manager and Strategic Partner (with a 40% shareholding) for our country's flag carrier Ñ Air Lanka. As part of the same announcement the government also stated that Air Lanka would be entering into a $ 500-700 million re-fleeting program with Airbus Industrie. This is to be the single largest purchase contract ever entered into by the government of Sri Lanka. The decision to purchase airbus airplanes had been taken bypassing established procurement procedures and conventions. From its inception, the Air Lanka restructuring process has demonstrated a pattern of inconsistency and opaqueness which has led many international and domestic observers to believe this transaction to be tainted with corruption. The following points I believe will highlight my argument in this regard. Shifting the goal-post The original requests for proposals document (RFP) explicitly stated that Air Lanka's flag carrier status, management contract, ground handling monopoly and exclusive catering right would only be available for a maximum of five years after restructuring. Similarly the subsidy on aviation fuel was to be only available for a period of one year. However, according to the deal reached with Emirates all these concessions would be available for ten years. A generous 15-year fiscal incentive package has also been added. Contrary to established procedures these deviations from RFP terms were not offered to other credible bidders who were interested in Air Lanka. In many such cases PERC, the government's lead agency responsible for this transaction, stonewalled and elegantly cast aside other interested parties, particularly those bound by national laws such as the Foreign Corrupt Practices Act of the US. For example when Mr. David Bonderman of Texas Pacific Group, Newbridge Capital and Continental Airways with whom I am sure you are familiar, sought flexibility to the terms of the RFP in writing, on some of the issues outlined above, he was turned down. Airbus re-fleeting Another controversial aspect is the government's announcement that Air Lanka are restructing. This was done without conforming to established procurement procedures. Ironically during my party's tenure in office the World Bank vehemently objected to Air Lanka's decision to placing a more modest order for Airbus aircraft although this decision had been taken after the Air Lanka Board, a Technical Committee and a Cabinet Sub-Committee had recommended the purchase. The current procurement decision has been taken without sufficient evaluation of the options available and appears to be based on unrealistic commercial and business forecasts. This is especially the case since Emirates have themselves ordered 16 aircraft of a similar type, some of which according to market speculation may be surplus for their own operations. The government has stated without substantiation that there would be no sovereign guarantees involved in this exercise. However the fact remains that even after restructring, 60% of Air Lanka's stock will remain government owned. Since it would be naive to assume that a government would allow its flag carrier to go into bankruptcy there is in fact an implicit government guarantee involved in this transaction. Emirates Alliance The route network of Emirates, which is owned by the government of Dubai and has a hub in that country, directly competes with that of Air Lanka. In this context it is difficult to imagine the complementarities and synergies that Emirates could bring to strengthen Air Lanka. Furthermore the agreement with Emirates pledges to give Air Lanka flag carrier status and route monopolies for a period of ten years, and also precludes the establishment of any other international airline in Sri Lanka within this period. At first glance this appears to give Emirates an open licence not only to cannibalize Air Lanka but also to potentially destroy Sri Lanka's chances of becoming a hub for this region. In an era where the trend is towards competition and open skies policies in civil aviation this whole arrangement appears to be rather strange and puzzling. As a rule I do not like to second-guess sound commercial decision, provided they are subject to transparency and competition on a level playing field. However, I am convinced that this was far from the case when the Sri Lanka Government decided on Emirates as the strategic partner for Air Lanka. The points above together with many other facets of this transaction have convinced my party, the United National Party (UNP), the main Opposition Party in Sri Lanka that the restructuring of Air Lanka was done with the sinister motive of obtaining illegal commissions for the benefit of personages in the Sri Lanka government. On realization of this fact, the General Secretary of the UNP wrote to Mr. Tim Clark, Director Airline Operations of Emirates, on 15th January 1998 prior to the consummation of the transaction warning him that our party, in the event of election into office would not abide by the agreement. Nevertheless both Emirates and the Government of Sri Lanka chose to go ahead with the restructuring program as originally conceived. I now understand that Emirates have formally applied to MIGA to obtain insurance for their investment. In this context I am compelled to communicate to you, in your capacity as the President of MIGA that a government formed by the United National Party will not honour any commitments or agreements that are entered into as part of the Air Lanka restructuring transaction which are tainted with corruption. As part of our own efforts to inquire into this scandal and bring to justice those who are culpable. We will be filing a complaint with the Bribery Commission of Sri Lanka. I would like to categorically state that the stance taken by my party on the restructuring of Air Lanka is not ideological and one that is purely motivated by the repugnant nature of this overly corrupt transaction. As you may be aware the United National Party from 1977 to 1994 was responsible for introducing and developing a free market economy in Sri Lanka. Our economic reform and privatization program was held up internationally as a model for other democracies in the developing world. As Prime Minister and Industries Minister, for a number of years, I had the privilege of playing a leading role in the reform process and had occasion to interact intensively with several of your colleagues and predecessors. During these dealings as a matter of principle I was against the granting of exclusive rights, monopolies and other rent-seeking opportunities in the guise of public enterprise reform. In fact, our Party's aviation policy aims to develop Sri Lanka into a regional hub within a framework of competition. The Air Lanka transaction as presently structured will not give us the necessary flexibility to achieve this objective. In conclusion, my past associations with the World Bank, have led me to believe that your organization would not in any way condone acts of corruption. Therefore I would urge that you initiate your own inquiries to ascertain the true facts behind the restructuring of Air Lanka and carefully review the Emirates application for MIGA insurance with the above background in mind. How suicide bomber approached
Wijeratne The military probing the killing of Vadamaratchchy Brigade Commander, brigadier Larry Wijeratne on May 14 believes that the suicide bomber has reached Point Pedro through Thennamaratchchy after landing at Nagarkovil in east Vadamaratchchy. The bomber has apparently come in a boat from Mullaithivu. There was no government security forces presence in Mullaithivu or Nagarkovil, an area in the Jaffna peninsula. However investigators have failed to establish the identity of the suicide bomber or his associates in Vadamaratchchy. The military believes that the killer has collected the explosive packed jacket from an infiltrator already based in Vadamaratchchy after moving across dozens of road blocks along the way to Point Pedro from Thennamaratchchy. Contrary to claims, the bomber had been a man in late 20s or early 30s. The military had extensively photographed the bomber's head. Asked whether the head had been sent to Colombo, a security forces officer replied in the negative. The military has sought public help to identify the suicide bomber. Troops are expected to put up posters carrying the suicide bomber's head in Vadamaratchchy and some selected areas in the peninsula with a view to establishing his identity. Vadamaratchchy troops have set up additional road blocks and mounted cordon and search operations amidst fears terrorists would intensify attacks to take the upper hand in the area. The new Brigade Commander has already addressed the senior citizens of the area, twice to explain the situation and also to assure that the military was in control. "There was no alternative but to step up checks and raids," military sources said. Under Wijeratne's command, Vadamaratchchy troops killed at least two dozens of terrorists in operations conducted in late last year. Brigadier Wijeratne, posthumously promoted to the rank of Major General was killed last Thursday afternoon when he was returning to his headquarters at Point Pedro. Senior officers admitted that the killing was a part of the LTTE efforts to take control of the civilians in the Vadamaratchchy sector. Jaffna peninsula comprised Vadamaratchchy, Thennamaratchchy and Waligamam. According to the latest figures available with the Jaffna Divisional Secretariat Office, there were altogether 89,366 persons living in Vadamaratchchy comprised Point Pedro[40,778], Karaveddi[42,227] and Maradankerni[6361]. The number of persons living in the peninsula[registered] has been placed at 470,156. However small groups of people continue to reach the peninsula from the Wanni mainland. "The exact number of people in the peninsula and the islands was a bit higher than the registered figure," a source with the Rehabilitation and Reconstruction Authority for the North[RRAN] spokesman said. The military said that terrorists wanted to control the civilian population. The killing, a senior officer in Jaffna said was aimed at crippling government efforts to restore peoples confidence. Under Wijeratne's command troops killed the Vadamaratchchy LTTE commander, Arjun and his deputy along with a dozen terrorists in December last year. "That was Brigadier Wijeratne's biggest success against the infiltrators," an officer said yesterday adding that Arjun, one time deputy to Sea Tiger commander, Soosai was undoubtedly one of the senior operatives to die in the peninsula since May 1996. Wijeratne's troops were able to recover the body of Arjun and others along with four T-56s, one Mi-16, 10 rounds of Rocket Propelled Grenades[RPGs] and communication sets. |
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